AHEAD of COP 29, the UN Climate Change Conference that opened today (Monday) in Azerbaijan, British Chambers of Commerce research has found a clear divide among SMEs on environmental targets.
Around half of firms with more than 50 employees told the survey, by the BCC’s Insights unit, that they have a recycling target or energy consumption target in place.
However, for firms with fewer than 50 employees, the figures fall to 35% and 25% respectively.
The picture for all SMEs shows that businesses are most likely to have a plan for recycling or waste reduction (38%).
But less than a third of all companies (28%) have a written target for energy consumption, while only a quarter (24%) have set a goal for their carbon footprint/emissions.
A third of all responding SMEs (32%) said that they have no plans to introduce a recycling target – while another 29% are considering one.
39% said they would not introduce energy consumption targets whereas 32% are considering doing so. Meanwhile 39% have no plans to bring in carbon footprint targets.
Alex Veitch, director of policy at the British Chambers of Commerce, said: “SMEs have a crucial role to play in the UK’s transition to a greener economy – and many have a great story to tell.
“But our research shows that size really does matter when it comes to the capacity of SMEs to have measurable environmental targets in place.
“With many small businesses continuing to deal with challenging economic conditions it is often difficult for them to set goals and closely monitor their net-zero journey.”
The survey found, however, that while many SMEs may not have formal targets, most are engaging in efficiency or environmental measures with low-energy lighting (65%) and recycling (59%) the most common.
Simon Cox, head of policy at Northamptonshire Chamber of Commerce, said: “The findings from this survey underscore a significant challenge for many small businesses, especially those with fewer than 50 employees, in setting and achieving environmental targets.
“While larger firms have more resources to implement formal sustainability plans, SMEs are often struggling with the day-to-day pressures of maintaining operations and managing costs.
“However, the commitment to environmental practices is evident, with many small businesses already adopting energy-saving measures and recycling initiatives even if they have not formalised targets.”
Delegations from both UK and international Chambers in the BCC network, will be heading to Baku for COP29. The conference runs until November 22.
The BCC is calling on businesses of all sizes to share best practice in measuring environmental performance. It is also urging the policymakers to increase support for smaller businesses looking to develop their environmental practices.
Simon said: “Looking ahead to COP 29, it is clear that SMEs will play a key role in the UK’s overall environmental strategy. But for these businesses to fully contribute to the country’s green transition, more support is needed.”
Such support could take the form of practical guidance on how to set achievable targets and policies that make it easier for smaller firms to invest in sustainable practices, he added.
“Collaboration across business communities, as well as between businesses and policymakers, will be essential in helping SMEs to meet their environmental ambitions and make a lasting impact.”
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